Premium finance companies in North Carolina are required to secure the Premium Finance Company Bond to be licensed. Jet provides this surety bond as a guarantee to the North Carolina Department of Insurance (NCDOI) that you will follow regulations to protect the public from unethical and illegal actions.
When you purchase your Premium Finance Company Bond with Jet, you will get a surety company that will be fighting in your corner; you receive direct protection against false allegations.
Bond prices are determined through Jet’s underwriting process, evaluating factors such as the bond limit and your personal credit score. For a $25,000 bond, you can pay as little as $25 a month or $250 annually. The chart below indicates rates for a preferred credit applicant who needs a $25,000 bond.
The Premium Finance Company Bond limit varies based on the type of premium financing company you are licensed as Type A or Type B. The limits for each license type are as follows:
The Premium Finance Company Bond is required by the North Carolina Department of Insurance to ensure that licensed premium finance companies will conduct business in accordance with regulations. The NCDOI is responsible for the management of insurance businesses to prevent the citizens of North Carolina from being victims of insurance fraud, which includes financing policies. This bond, provided by Jet, assists the NCDOI in protecting consumers by reimbursing those who have suffered losses from a premium finance company’s illegal or negligent actions.
After you purchase the Premium Finance Company Bond, Jet takes care of filing it for you! You will receive an electronic copy of the bond following purchase.
You may opt to have the original bond sent to you, should you want to submit the bond with other paperwork. The original bond and attached power of attorney must be mailed to:
NC Department of Insurance
Agent Services Division
ATTN: NIBE Team
1204 Mail Service Center
Raleigh, NC 27699-1204
No problem! Just send Jet a written request (email is fine), and we will send a cancellation notification to the North Carolina Department of Insurance right away. The bond will be kept active for an additional 30 days by the NCDOI before being cancelled.
If you paid for the license bond in full, Jet will calculate the refund based on the time that your bond was active (including the 30 days the NCDOI kept the bond active) and return the remainder of the premium. Those paying on monthly terms will not receive a refund, but the payments will end after the 30-day cancellation period.
You must maintain a Premium Finance Company Bond to avoid complications with your license. If you cancel your bond with Jet before June 30th (the license expiration date), it may put your license in jeopardy if there is no replacement.
A North Carolina premium finance company is obligated to be licensed by the Department of Insurance and operate under the rules and regulations of the General Statutes Chapter 58, Article 35 and the NC Administrative Code Title 11, Chapter 13, Section .0300. By operating a premium finance company in compliance with these rules, the opportunity for claims to arise is greatly reduced. To avoid claims, a premium finance company must not:
Complaints against premium finance companies will be heard by the North Carolina Department of Insurance Commissioner. Whether valid or not, this gives financing companies a chance to defend themselves or make proper restitution to the aggrieved party.
The Commissioner may not only favor the side of the complainant but may impose a monetary penalty ranging from $100 to $1,000 per GS 58-2-70. A claim on the bond can be filed by the injured person for reimbursement of damages if the financial damages remain unpaid by the defendant (premium finance company). There may also be action against the license including suspension and revocation.
If a claim is filed against your Premium Finance Company Bond, Jet will do its best to defend you against false claims. If the claim is found to be valid, Jet will reimburse the claimant for damages up to the limit of the bond. However, because you are ultimately liable for your actions as a premium finance company, you are still obligated to pay Jet back to restore your bond to the full limit to avoid license complications.
Applying for a Premium Finance Company Bond is easy with Jet! Our online application takes you through each step and takes just a few minutes to complete. You will only need to put in necessary information such as the bond limit, business information, permit number, and an authorized officer’s name and title. Since this bond requires a soft credit check (no harm done to the credit), the application will ask for the applicant’s or officer’s social security number.
Once the application is complete, one of our underwriters will review the submission and send you an email with the quote so you are able to purchase the bond directly online. Following the purchase, you will receive a copy of the bond and receipt and Jet will file the bond for you!
The Premium Finance Company Bond has a term of July 1st through June 30th and must be renewed along with the premium finance company license. Jet will send you a renewal notice well in advance of the June 30th date through mail and email.
For Type A, in-house financing operations, an important part of the renewal process is to indicate to Jet if the North Carolina Department of Insurance requires a change to the bond limit, so Jet can file the appropriate bonding amount to the NCDOI.
With monthly payments, there is no renewal process, so long as payments stay current, so does the bond. If there is a change in your bond limit, make sure to notify Jet and the rates will be adjusted accordingly.
If you pay annually or in 2- or 3-year terms and wish to renew online, simply click the link in the email to pay the renewal premium and your bond will be renewed instantly. For mailed renewals, fill out the notice and mail it back to Jet.